Assessing the Distributive Impact of More than Doubling the Minimum Wage: The Case of Uruguay

Type Working Paper - DECON
Title Assessing the Distributive Impact of More than Doubling the Minimum Wage: The Case of Uruguay
Author(s)
Issue 17/11
Publication (Day/Month/Year) 2011
URL http://cienciassociales.edu.uy/departamentodeeconomia/wp-content/uploads/sites/2/2013/archivos/1711.​pdf
Abstract
This paper analyzes the role of the sharply increases in the minimum wage after 2004 in Uruguay in the slight decrease on wage inequality. We Önd no impact of the miminum wage increases on wage inequality. This results can be explained by the low starting level of the minimum wage or lack of compliance with it. The Uruguayan experience shows that the minimum wage is not always e§ective as a redistribution instrument.

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